Berkshire Hathaway's earnings surge 39% as Buffett's cash pile hits a record $188 billion.

• The operating profit of the Warren Buffett-led conglomerate, which includes earnings from its wholly owned businesses, increased by 39% to $11.22 billion from the previous year.
• The increase in insurance underwriting earnings from $911 million to $2.598 billion was a result of a 185% year-on-year gain.

In the first quarter, the company reported a significant year-over-year increase in operating earnings, coinciding with a record-high increase in cash holdings.

The operating profit of the Warren Buffett-led conglomerate, which includes earnings from its wholly owned businesses, increased by 39% to $11.22 billion from the previous year.

The increase in insurance underwriting earnings and investment income led to a significant gain in the insurance industry.

Berkshire's railroad business earned $1.14 billion in profit in the first quarter of 2023, although this was slightly lower than the previous year. Meanwhile, its energy division experienced a significant increase in earnings, from $416 million to $717 million.

Berkshire Hathaway's first-quarter net earnings, which are influenced by fluctuations from its stock investments, decreased by 64% to $12.7 billion. Despite Buffett considering these unrealized gains or losses each quarter to be meaningless and misleading, the conglomerate is obligated to report these figures based on generally accepted accounting principles.

Record cash hoard

The company's cash reserves hit a record high of $188.99 billion in the fourth quarter, surpassing the previous record of $167.6 billion. Despite a CFRA Research estimate of more than $170 billion, Buffett's inability to find a suitable major acquisition target has resulted in this massive holding.

The annual shareholder meeting, dubbed "Woodstock for Capitalists," is approaching, and Buffett will address shareholders' questions about the conglomerate's investments and his views on the economy.

The first annual meeting since the passing of Vice Chairman Charlie Munger in November will take place.

Berkshire Class A shares have surpassed an 11% increase and reached a new record high in late February, while Class B stock has achieved a gain of over 12% within the same time frame.

Check out CNBC's full coverage of this year's annual meeting here.